The increased targeting of oil and gas infrastructure in the Iran conflict is hitting trader mood hard, as concerns grow that the present energy crisis may have a long-term impact on the global economy.
Oil prices rose again on Thursday, as the battle with Iran tightened its hold on the global economy, sending stock markets throughout the world lower.
Brent crude, the worldwide benchmark, momentarily surged beyond $119 per barrel before falling down to $110.80, still up 3.2% from the previous day. US crude rose 0.7% to $96.09 as Iran escalated attacks on Gulf oil and gas installations in response to an Israeli strike on a major Iranian gas field.
The strikes fueled fears that Gulf oil and gas production may be halted for months, raising prices and adding to global inflation pressures. Earlier on Thursday, both the European Central Bank and the Bank of England held key interest rates, indicating that inflation forecasts may need to be revised due to rising energy prices.
The S&P 500 fell 0.4% and is on track for its fourth consecutive loss week, the longest skid in a year. The Dow Jones dropped 188 points (0.4%), while the Nasdaq fell 0.6%.Stock indices fell across the US, Asia, and Europe, with Germany and the UK down 2.5% and the CAC 40 in Paris down 1.9% at roughly 15:30 CET.
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